Could there come a time that Microsoft will own Netflix in the future? Well, at least one financial analyst thinks so.
Microsoft is currently actively pushing to acquire videogame studio Activision Blizzard to pair with its gaming brand, Xbox. And while this deal could take some time to get closed, Microsoft could be on to bigger things in the future.
Just recently, Microsoft proudly announced its partnership with the popular video streaming app, Netflix. As announced, Microsoft will be supporting Netflix’s first ad-supported subscription offering. One senior analyst, Laura Martin, who recently had an interaction with Yahoo! Finance said that the Microsoft and Netflix partnership could lead to something bigger. According to Martin, this could be the beginning of a long-term process that could result in Microsoft acquiring Netflix soon.
Laura Martin also broke down two key factors as to why she speculates that Microsoft could be a potential buyer for Netflix:
- First, Netflix specifically chose Microsoft as its advertising partner even though the latter is not the best choice when it comes to the advertising niche. Although Netflix is looking to boost the number of subscribers, Martin thinks that “It could be that Netflix is looking for an exit,”. Moreover, she assumed that this deal is just to groom an upcoming deal between the two powerhouse companies.
- Second, Martin explained that Microsoft is the only company capable of buying Netflix right now. Even with a hefty price tag of $100 Billion, Microsoft still has the budget for the amount. Additionally, since Microsoft is on the move to acquire Activision Blizzard, turning to Netflix sounds like a pretty possible idea.
You know it’s getting bad when you lose hundreds of thousands of subscribers every month. Unfortunately, it is what is currently happening to Netflix. They continue to lose more subscribers as the day passes and could potentially lose millions more this year alone. Because of that, what the future holds for Netflix is still unknown. With other streaming platforms like Hulu, Disney+, HBO Max, and Amazon Prime Video taking the spotlight, the decline of Netflix is fairly inevitable.
A Microsoft and Netflix tie-up is just speculation created by a professional financial analyst. Although it looks good on paper, it takes more than just a simple buyout to complete the deal. Similar to the planned acquisition of Activision Blizzard, Microsoft will face a lot of repercussions and will turn a lot of heads when the time comes they finally take interest in Netflix. It probably is going to be one of the biggest purchases in stock market history.
Other related topics to this article:
- Netflix Just Lost 200K Subscribers This Week, Could Potentially Lose Millions More
- Netflix Future – Cheaper Subscription Plan
- Microsoft To Acquire Activision For Almost $70 Billion
- Epic Games Teams Up With Microsoft After Legal Battle With Apple
What do you think of this Microsoft and Netflix deal? Feel free to share your thoughts in the comments section below. For more content, stay with us, here at Spiel Times.
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